Welspun Corp gets Rs 100-crore tax notice, shares fall

Welspun Corp shares fell after on Monday said it has received tax demand notice of Rs 100 crore in respect of a manufacturing unit in Anjar, Gujarat.

Welspun Corp shares fell after on Monday said it has received tax demand notice of Rs 100 crore in respect of a manufacturing unit in Anjar, Gujarat. (Photo: Reuters)

Welspun Corp shares wiped off initial losses on Tuesday and closed with gains after the company on Monday said it has received tax demand notice of Rs 100 crore in respect of a manufacturing unit in Anjar, Gujarat.

At 12.10 pm, Welspun shares were trading 1.27 per cent up at Rs 108.60. The scrip opened at Rs 108.00 and has touched a high and low of Rs 112.80 and Rs 105.75 respectively, in trade so far. Later, the share price of the company ended 3 per cent up at Rs 113.30.

The BSE group ‘A’ stock of face value Rs. 5 has touched a 52 week high of Rs. 153.60 on 05-Aug-2015 and a 52 week low of Rs. 51.90 on 27-Mar-2015.

Last one week high and low of the scrip stood at Rs 117.15 and Rs 105.75 respectively. The current market cap of the company is Rs 2837.04 crore.

The promoters holding in the company stood at 40.85 per cent while Institutions and Non-Institutions held 13.83 per cent and 36.56 per cent. respectively.

The demand notices from the Assistant Commissioner of Commercial Tax, Gandhidham, pertains to a period between February 1, 2014 to September 30, 2015, in respect of a manufacturing unit at Anjar (Gujarat), Welspun Corp said in a BSE filing.

The demand notice of Rs 100.46 crore includes tax amount of Rs 37.53 crore, and interest and penalty amount of Rs 62.9 crore.

“We have been advised that there are many favorable merits in the matter enabling us to contest these demand notices at the appropriate forums,” Welspun said.